In most cases,at the optimal consumption bundle:
A) the consumer cannot increase utility without some change in market conditions or preferences.
B) the last dollar spent on each good brings the same amount of satisfaction to the consumer.
C) the marginal rate of substitution is equal to the absolute values of the slope of the budget constraint.
D) the indifference curve is just tangent to the budget constraint.
E) all of the above

Question

Quizplus · Accepted Answer

At the optimal consumption bundle, all the conditions described in options A, B, C, and D are true. This point is where the consumer maximizes utility given their budget constraint, and it is characterized by the equality of the marginal rate of substitution and the slope of the budget constraint (indicating the last dollar spent on each good brings equal satisfaction), and the indifference curve being tangent to the budget constraint, indicating no further utility can be gained without changes in market conditions or preferences.

In Most Cases,at the Optimal Consumption Bundle